Time to J&J targets Deals grab explorethe Devine right headlines Silk Road to win in 2017 page 10 page 18 page 20
Contents Pfizer celebrates 15 December 2017 Issue Number 494 COMPANY NEWS UK Viagraswitch Nestlé makes Atrium move 3 en in the UK will soon have OTCac- UK pharmacies “in the spring of 2018”. Alliance snaps up 4 Mcess to Pfizer’s blockbuster erectile- “Inthe interim,”Pfizer added, “the company Vamousse range dysfunction treatment Viagra after an appli- will be implementing an extensive trainingand HRAPharmaeagerly 5 cation to switch the sildenafil-based product education programme with pharmacies.” seeking acquisitions wasgiven the green light. Viagra Connect will be available from a Damier growswith Remark5 Following aconsultation –launched earlier pharmacist without aprescription for men aged this year (OTC bulletin,7April 2017, page 18 years or older suffering from erectile dys- Venture Life to grow 6 9) –the UK’s Medicines andHealthcare prod- function. The maximum dose is one tablet a global OTCoffering ucts Regulatory Agency(MHRA) approvedthe day,with apack size of up to eight tablets. Phoenix increases7reclassification of sildenafil50mg film-coated Theapprovalwill be areal boon to Pfizer’s presenceinSerbia tablets from prescription-only medicine (POM) Consumer Healthcareoperation, which is cur- ZurRosesnaps up another rival7 to pharmacy(P) status. rently under“strategicreview”. Pfizer will make The MHRA–which pointedout that other adecision on whetherto sell theunit next year GENERAL NEWS medicines containing sildenafil would still be (OTC bulletin,20October 2017, page 1). GSK suveysCanadians 8 available on prescription –confirmed to OTC Noting that it had approvedthe switch “fol- bulletin that generic 50mgformulations would lowing areassuring assessment of the safety FDAeases app focus 11 remain prescription-only unless and until they of Viagra Connect and advice from the UK’s Optimisation keytogrowth 11 successfully underwent asimilar switch procedure. Commission on Human Medicines”, the MHRA France investigates 14 Pfizer vere aled that it wasalready “work- pointed out that the product would only be sold OTCsale monopoly ing on plans” to introduce OTCsildenafil – after adiscussion with apharmacist. under the brand name Viagra Connect –in Continued on page 8 MARKETING NEWS DocMorris launches 15 chronic illness app WBAbreaks intoChina GSK keeps hands clean 15 algreens BootsAlliance (WBA) is pois- Headquartered in Shanghai, GuoDaoperates ASA clears Nurofen 16 Wed to break into China’sretail phar- more than 3,500 retail pharmacies in 70 cities of misleading TV ad macymarket by grabing aminority stake across China and is the country’snumber one ACCC goes forVoltaren 16 in the country’sGuoDa drugstore chain. pharmacychain by sales. Under the terms of the deal, WBAwill pay Describing GuoDa as “China’sleading phar- REGULARS Sinopharm Accord CNY2.77 billion (C355 mil- macy chain”, WBApointed outthat the drug- Events –Our regular listing 17 lion) to take a40% stakeinits subsidiary Sino- store operator had been seeking outside invest- People –Bayer announces 24 pharm HoldingGuoDaDrugstores. Thetrans- ment to support its strategy for “expansion newUKOTC head action is subject to regulatory approvaland across the country”. GuoDa waslooking to other closing conditions. Continued on page 5 Connect with us on: Twitter LinkedIn OTC-bulletin.com Youfocus on GREA V T consumer healthcare ALUE Indiv idu subscrip al So do we ... tio are onl ns y Letus bring you thenews £995 that matters to your industry
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Mergers &Acquisitions Nestlé makes Atrium move
estlé has signalled its intention to become Science division, which offers “science-based Naforce in consumer healthcare by acquir- nutritional solutions” direct to consumers and ing Canadian supplements specialist Atrium through healthcare professionals. Innovationsfor US$2.3billion (C1.95 billion) Commenting on the deal, GregBehar,Nestlé fromagroup of investors led by PermiraFunds. Health Science’schief executive officer,said Subjecttoregulatoryapproval,the transaction is Atrium’sbrands “naturally complemented” expected to close in the first quarter of 2018. Health Science’sConsumer Care portfolio. Describing Atrium as a“global leader in “Atrium’sportfolio will extend our product nutritional health products”, Nestlé said the range with value-added solutions such as pro- deal supported its “pursuit of growth oppor- biotics, plant-based protein nutrition, meal re- The Wobenzym Njoint-health supplement tunities in consumer healthcare, complement- placementsand an extensivemultivitaminline,” bulletin,6October 2017, page 5). ing the company’sfocus on its high-growth Behar noted. “Atrium’sestablished brands are in Prior to itstakeoverbyNestlé, Atrium in late food and beverage categories”. attractivecategories andhavethe potential for November struck astrategic partnership with Quebec-based Atrium wasexpected to gen- continued stronggrowth as part of Nestlé through Chinese cross-border e-commerce platform Net- erate turnoverof“almost US$700 million” in category, channel andgeographic expansion.” Ease Kaola to gain better access to China’s grow- 2017,Nestlé noted,from sales in morethan50 Thedeal alsogaveNestlé afoothold in the ingmiddle class consumer base. countries across North America, Europe and Asia. “fast growing” segment for “organic andnatu- Atrium’sbest-selling line, the Garden of ral supplements”, Behar said. Deal with NetEase Life organic supplements range, wasthe “num- Peter Luther,Atrium’spresident and chief The Canadian firm said striking adeal with ber-one brand in the natural supplements indus- executive officer, said the firm was“looking for- one of China’s“fastest growing e-commerce try in the US”, Nestlé claimed, while the Pure ward to continued growth as part of Nestlé”. companies” would enable Atrium to expand its Encapsulations hypoallergenic supplements line “Nestlé will provideAtrium with the resources limited presence in the East Asian country. wasthe “number-one recommended brand in to accelerate the growth of our brands,”Luther Atrium entered theChinese market in 2016, the US practitioner market”. added, “and to reach more consumers globally.” by establishing wholly-owned subsidiaries in Both brands are also available in China, as Nestlé’sacquisition of Atrium comes six Shanghai and Hong Kong. is the Wobenzym supplement line, which is months after the Swiss food and drinks giant Expanding on the rationale behind the agree- claimed to “promote joint health and help re- committed to growing its presence in the global ment, LuthersaidNetEase Kaola’sunderstand- lieve everyday aches and pains”. consumer healthcare market (OTC bulletin,21 ingof“shopperinsight” and “purchasing behav- Atrium’sEuropean portfolioincludes theAOV July 2017, page 7). iour” would help Atrium to tap into the “huge alternative medicine line, Orthica probiotics Commenting on this strategy in October, potential” of the Chinese market. and Minami omega-3 range, as well as Pure Nestlé’schief executive officer,Mark Schneider, Atrium’sbrands –such as Wobenzym and Encapsulations and Wobenzym. said the companywas interested in “anything Garden of Life –offered “unique benefits” for Nestlé noted that upon closing Atrium’s thatisclose to our core skillsetaround nutri- those Chinese consumers “looking for more management team would remain in place and tion and skin, and anythingthatgives us astrong- natural, clean and provensupplements from the it would incorporate thebusiness into its Health er presence in the drugstore channel” (OTC international market”, Luther claimed. OTC
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15 December 2017 OTC bulletin 3 OTC COMPANY NEWS
Mergers &Acquisitions Mergers &Acquisitions Euroapotheca Alliance snaps up creates chain atvia’s Euroapotheca said it was poised to Vamousse range Lbecome a“leading” player in the Nordic pharmacy market after signing adeal to form lliance Pharma is poised to grow its anew wholly-owned pharmacy chain in Sweden. Apresence in the global consumer health- The Vilnius-based wholesaler and retailer care market by snapping up the Vamousse has entered into an agreement to acquire the head-lice treatment from US-based development Apoteksgruppen virtual pharmacychain from the firm TyraTech. Swedish government for an undisclosed sum. Under the terms of the deal, UK-based Noting that Apoteksgruppen’snetwork com- Alliance will acquire the global rights to Va- prised 189 Swedish pharmacies, Euroapotheca mousse for an initial consideration of US$13.0 said it had signed deals to acquire 156 stores million (C10.9 million) and adeferred contin- from their independent owners, plus three gencyconsideration of up to US$4.5 million. The Vamousse head-lice range directly-owned outlets, allowing it to establish Subject to approvalbyTyraTech’ssharehold- Commenting on the buy, John Dawson, Alli- awholly-owned chain. The remaining 30 ers,the transaction is expected to close “before ance’s chief executiveofficer,saidthe firmwas pharmacies would continue to operate under 31 December 2017”. “delighted” to gain Vamousse, which would the Apoteksgruppen name butremain inde- The Vamousse line –which comprises a become the company’s“third major international pendently owned, Euroapotheca noted. head-lice treatment mousse and aprotective growth brand”, alongside the Kelo-Cote scar treat- Following completion of the deal, Euro- shampoo –generated sales of US$6.6 million ment andMacuShield eye-health supplement. apothecaclaimed thatitwould operate the fourth in 2016, with agross profitofUS$4.6 million. “Vamousse will leverage our current infra- largestpharmacy chain in Sweden, with amarket On ageographical basis, the US accounted structureasitfits well into our growingUK share of approximately 9%. for around 83% of Vamousse’sannual sales, consumer business, whilst expanding our foot- Raimonda Kižien˙e,Euroapotheca’schair- TyraTech pointed out, with the UK generat- print into the US,”Dawsonpointed out. “The man and chief executive officer,saidher firm ing the remainder. brand will also benefit from added distribution was“excited” to work with Apoteksgruppen’s TyraTech claimsthat Vamousse kills“100% boththrough our EuropeanUnion (EU) affiliates managementteamto“capitaliseonthe growth of lice and eggs within 15 minutes of contact” and through our international partner network, opportunities in the Swedish market”. with “no need to re-treat”. whichoperates in over90territories worldwide.” “By working together,wesee significant scope DescribingVamousse as an “innovative,pesti- Speaking to OTC bulletin earlier this forsynergiesinsuch areasasprocurementand cide-free range of consumer healthcare products year,Dawsonnoted that Alliance wasback in private label development,”Kižien˙einsisted. for the prevention and treatmentofhuman head the market for acquisitions after completing “Euroapotheca will deployits extensive lice”, Alliancesaidthe brand’s “unique physical the integration of alarge portfolio of brands pharmacyretail knowledge to ensure the suc- mode of action” had helped it grow“signifi- from Sinclair IS Pharma (OTC bulletin,7 cessfuldevelopmentofApoteksgruppen going cantly” ahead of its category in the US. April 2017, page 4). OTC forward, both organically and through selec- tive acquisitions,” she explained. “Additionally, Business Strategy/First-Half Results we are impressed with the existing high-quality franchise model of Apoteksgruppen and view Jacobson plots Asia expansion anumber of attractive opportunities to lever- age this in our other markets.” ong Kong’s Jacobson Pharma is working ances” in theAsia-Pacific region “with aviewto Kižien˙epointed out that the acquisition of Hto grow the reach of its consumer health- expanding the firm’sgeographical reach and Apoteksgruppen formed a“keystep” in Eu- carebrandsoutside itsdomestic market. market presence” (OTC bulletin,20October roapotheca’sstrategy “to become the leading Reporting its financial results for the six 2017, page 4). pharmacynetwork in the Baltics, Nordics and monthsended 30 September 2017,Jacobson Turning to its first-half results, Jacobson re- Centraland Eastern Europe (CEE)”. Oncethe said it wastargeting the “geographical expan- ported turnoveratits ProprietaryMedicinesup deal wascompleted, Euroapotheca would operate sion” of itsProprietaryMedicines unit –which by 76.2% to HK$121 million,thankstobetter anetwork of morethan600 pharmacies across houses its OTCand traditional Chinese medi- sales of the Ho Chai Kung pain-relief line and six markets, she noted,generating annualsales cine(TCM) products –“into strategic markets the impact of acquisitions. of around C750 million. in theAsiaPacific region”,such as Taiwan and Jacobson expanded Proprietary Medicines Taking the helm of Euroapotheca in Octo- certain South-East Asian countries. earlier this year by acquiring three OTCbrands ber,Kižien˙eannounced thatshe would work to A“dedicated” business development team from Ling Chi Medicine (OTC bulletin,3 develop the firm by seekingavo “f urable ex- hadbeenput together,Jacobsonnoted, “to pur- February 2017, page 2). pansion possibilities abroad”. sue marketevaluations andtoexpedite market Proprietary Medicinesaccounted for16% of “Weconsider business expansion the largest entry and regulatory clearance”. Jacobson’stotal sales in the six months, which priority of our group,”Kižien˙esaid. “Wehave In October, thefirm raised HK$500 million advanced by 29.1% to HK$743 million. The aclear direction and an action plan, which we (C54.3 million) which it said would be used for majority of the remainder wasgenerated by intend to implement.” OTC both acquisitions and to form “strategic alli- its Generic Drugs unit. OTC
4 OTC bulletin 15 December 2017 COMPANY NEWS OTC
Mergers &Acquisitions Business Strategy Damier grows HRA Pharma eagerly with Remark seeking acquisitions amier–the investmentfundled byYvan DVindevogel–has movedastep closerto achieving its ambition to top C100 million in RA Pharma is aggressively seeking out to double the brand’ssales in the next four years annual sales by acquiring for an undisclosed Hacquisitions to help it become one of the by building on its strong position in Europe sum Dutch consumer healthcare playerRemark. fastest-growing OTC companiesinthe world, –where it holds the number one position in Noting that Remark generatedturnoverof accordingto the firm’spresident andchiefex- the blister-care category –and expanding its “more than C35 million” in 2016 –fromsales ecutive officer David Wright. reach into newmarkets outside the region. of its proprietary and third-party consumer Speaking in avideo message to delegates Noting thatthe company hadachieved“high healthcare and cosmetic brands–Belgium-based at the 12th Annual CeutaHealthcare Interna- double-digit”sales growth in 2017 –drivenby Damier said the deal would help it reach its tional Alliance Conference, Wright –who took EllaOne –and wastargeting the same in 2018, C100 million target “in the near future”. Cur- chargeofHRA in April (OTC bulletin, 7April Wright insisted that HRA wason track to be- rently,Damier’ssales are around C70 million. 2017, page 23) –saidthat the acquisition of come one of the “fastest-growing OTCcompanies Yvan Vindevogel, Damier’s chief executive the Compeedskin-care rangefromJohnson& in the world overthe next fewyears”. officer,saidthe acquisition of Remark “com- Johnson(J&J) earlier thisyear (OTC bulletin, Established in 1996, HRA has historically fo- plemented” his firm’sgrowth strategy. 6October 2017, page 8) represented the first cusedonwomen’shealth, achieving acentralised “With its diversified portfolio,Remarkwill in aseriesofdeals that he envisioned would switch across the European Union (EU) in 2015 of contribute to the development of the other give the France-based firm a“platform to be- EllaOne (OTC bulletin,16January 2015, page 8). companies in ourgroup,”insisted Vindevogel, come an OTCcompanyofsome size”. Late last year,HRA announced its plan to “whilst benefitting from Damier’sintimate Backed by private-equity owners that snap- switch an oral contraceptive to OTCstatus for market knowledge and expertiseinthe sector.” ped up HRA last year (OTC bulletin,4March the first time in the US in partnership with “After the acquisitionsofFlinndal, Purasana 2016, page 7), Wright said that the firm had Ibis Reproductive Health (OTC bulletin,13 and Bärbel Drexel, Damier continues to ac- developed an “aggressiveacquisition strategy” January 2017, page 4). tively develop its platform in the growing and that would build upon Compeed –which he HRA said at the time it would work with underdeveloped consumer healthcare market revealed the companywould take full man- Ibis –anon-profitresearch organisation for re- which still offers great potential for consoli- agement of in February 2018 –and the firm’s productive health –to“conduct the research dation,”headded. EllaOne emergencycontraceptive. neededand submitan application to the US Food Established in 1989, Remark distributes its Describing Compeed as a“once in alife- and DrugAdministration (FDA) to make abirth- products in its home market and across anum- time asset”, Wright said that the firm planned control pill available OTC”. OTC ber of other European countries. The firm’scon- sumer healthcare portfolio includes the Daro cough and cold range, Sanalgin analgesic and Mergers &Acquisitions the Zarqa skin-care line. Damier has been on an acquisition spree in WBAbreaks intoChina 2017, snapping up both Purasana and Bärbel Drexel, in addition to Remark. Continued from front page “strategic investor” in GuoDa. In June, Damier grabbedGerman vitamins, takeadvantage of ongoing healthcare reforms “Webelieve that we can positively contribute minerals and supplements (VMS) specialist in China, WBAnoted, and the “increasing im- to GuoDa’scontinued successful development Bärbel Drexelfromprivate-equity firm Finatem portance of the pharmacychannel”. with our globalpharmacyexpertise,”Pessinain- for an undisclosed sum (OTC bulletin,16June Commenting on the rationale behind the deal, sisted. “Wehavehad apresence in China for 2017, page 3). aspokesperson for WBA OTC bulletin said around 10 years, and we are excited about the Bärbel Drexelwas “one of the keyplayers” that the time wasright to enter the Chinese opportunity to further invest in the country’s in the mail order ande-commerce direct-to-con- pharmacymarketasgovernment reformswere fast-growing retail pharmacysector.” sumer marketing of VMS products in Germany, transforming the healthcare landscape. WBAholds a50% stakein Guangzhou Damier noted at the time, adding thatthe com- Dispensaries were beginning to move from Pharmaceuticals–one of China’s largest phar- panyhad achieved a“soundlevel of profitability”. hospitals into pharmacies, the firm pointed out, maceutical wholesalers (OTC bulletin,15Febru- Four months later,Damier acquired for an which wasexpected to create “significant op- ary 2008, page 2) –and owns 12% of whole- undisclosed sum Belgian dietary supplements portunities” in retail pharmacy. saler Nanjing Pharmaceutical (OTC bulletin, and health foods specialist Purasana (OTC Asked whyithad chosen to invest in GuoDa, 10 October 2014, page 7). bulletin,20October 2017, page 3). WBAsaidithad been attracted by the Chinese The US wholesale and retail giant has been Describing Purasana as the “Belgian market chain’saspiration to “diversify its offering com- looking to establish apresence in China’sre- leader in high quality health foods, food sup- pared to itscompetitors”. WBAwas “well posi- tail pharmacymarket for some time. In January, plementsand organic products”, Damier noted tionedtoprovide its significantexpertise to Guo- Pessinarevealed thatWBA had been “veryact- at the time thatthe company marketed its port- Da and support its growth ambitions”, it added. ive” over the past fewyears in China in an effort to folio in 15 European countries “with export Stefano Pessina, WBA’schief executive of- acquire astake in a“big pharmacy chain” (OTC sales continuously increasing”. OTC ficer,saidhis firm waspleased to become a bulletin,13January 2017, page 7). OTC
15 December 2017 OTC bulletin 5 OTC COMPANY NEWS
Business Strategy Business Strategy J&J wants VentureLifetogrow innovation globalOTC offering ohnson and Johnson (J&J) Consumer is Jseeking innovative digital solutions to pro- enture Life is in the market foracquisition mote “better skin-care outcomes for consumers Vopportunities as it looks to bolsterits pres- around the world”. ence in the global consumer healthcare mar- Working in collaboration withJ&J Innova- ket, according to the firm’s chief financial officer tion, J&JConsumer saiditwas searching for Adrian Crockett. students, entrepreneurs, researchers and start- Speaking to OTC bulletin,Crockett said up firms developinginnovative devices which the UK-based self-care specialist wason the could “tackle the toughest skincare challenges”, look out for both companyand product acqui- suchasacne,eczemaand photoageing. sitions in numerous OTCcategories. Launching its ‘Digital Beauty QuickFire Areas of interest for Venture Life –which Challenge’, the US-based manufacturer said focuses on “developing, manufacturing and VentureLifeisinthe marketfor deals it wasoffering aprize of up to US$50,000 commercialising products for the ageing pop- (C42,200) to developers working on innovative ulation” –included, butwere not limited to, Life’sstrategy is focused on “providing inno- skin-care products.The winner of thechallenge companies or products covering the cardio- vative products for the international consumer would receive J&J’ssupport to develop and vascular,dermatology,diabetes and gastroin- healthcare market, deliveredthrough an interna- commercialise their idea, the firm said. testinal categories, Crockett explained. tional network of sales and marketing partners”. J&J explained that winners would also be Opportunities within the gynaecology,neu- The company’sproduct range and pipeline granted admission to its Consumer Experience rology,metabolism and sleep categories would comprises medical devices for onychomycosis, Centre,where theywould be supportedthrough also be carefully considered, he noted. rosacea and proctology. the design and execution of their product. Venture Life also offers food supplements Adding to the incentivesfor applicants to Seeking established brands forloweringcholesterol and maintainingbrain enter the QuickFire Challenge, J&J said that VentureLifeideally wanted to acquire “est- function, as well as dermo-cosmetics for ad- winners would also gain access to aJ&J Inno- ablished OTCbrands with asuccessful sales dressing the signs of ageing. vation JLAB facility for one year where they history in afew keymarkets”, Crockett said. Some of its keybrands include the Original wouldbeable to tapintoapool of expertise. Noting that the firm currently operated in Bioscalin hair-loss treatment, UltraDEX oral- Noting the potential for digital innovation over40countries through its network of more health line and NeuroAge, afood supplement to “challenge the very definition of skin care than80 marketingpartners, Crockett saidVen- for cognitive function. itself”, president of J&J Consumer’sglobal ture Life wasseekingOTC brandsthat had the Through its Biokosmes operation based in Beauty business unit, Sebastien Guillon, said potential to be launched “globally or into many Italy,Venture Life provides development and he welcomed the “co-creation of meaningful, other international markets”. manufacturing services to firms in the medi- future forward skin solutions”. Headquartered in Bracknell, UK, Venture cal device and cosmetic sectors. OTC “By creating powerful connected experiences with those outside of our companywalls”, Guillon Mergers &Acquisitions emphasised, “we are able to build consumer preference,loyalty and unique personalisation.” The Digital Beauty QuickFire Challenge Piramal grabs gastrobrands seeks innovations which: ndia’s Piramal has expanded its Consumer added, and the companybelievedthat Digeplex IProducts division by acquiring the local gas- had the potential to become a“power brand” l Empower consumers to makebetter informed skin-care choices trointestinal brand Digeplex and associated prod- in the category. l Enable consumerstomonitor skin-triggers, ucts fromShreya Lifesciences for an undisclos- Nandini Piramal, the firm’sexecutive direc- such as pollution and ultraviolet raditation ed amount. tor, saidDigeplex andthe associatedbrands were l Effectively treat persistent skin-healthconcerns Digeplexwill join Piramal’sexisting domes- an ideal “strategic fit” for the companyand The deadline to submit an application to the tic gastrointestinal brands, which include the moveditcloser towards its goal of creating a QuickFire Challenge is 19 January 2018, and laxative Naturolax and antacid Polycrol. “powerful portfolio of OTCbrands in India”. the winnerswillbeannounced in spring 2018. Kedar Rajadnye, chief operating officer at Pira- “Our aim is to be asignificant player in J&J Innovation introduced the QuickFire mal Consumer Products,pointedout that today’s every business under the healthcare vertical with- Challenge to encourage “innovative solutions consumers led a“fast-paced andhectic” life- in Piramal,”headded, and acquisition is one of to advance safety in healthcare products” (OTC style, leading to agrowth in digestive problems. the important routestohelp us achievethis goal, bulletin,7April 2017, page 7). The business ThemarketinIndiafor OTCgastrointest- havingcompleted three acquisitions in theOTC also collaboratedwithJanssen Pharmaceutical inalproducts –comprising constipation, diar- space overthe past years.” earlier this year for its ‘Next-Gen Baby Box rhoea andappetite stimulantcategories–wasa Piramal expandedits domestic OTCportfolio QuickFire Challenge’ (OTC bulletin,16June “RS13,000 (C172 million)opportunity” which last year by acquiring four brands from Pfizer 2017, page 4). OTC hadadvanced by 11% in the past 12 months, he (OTC bulletin,27May 2016, page 7). OTC
6 OTC bulletin 15 December 2017 COMPANY NEWS OTC
Annual Results Mergers &Acquisitions Engelhard Phoenix increases sets record presence in Serbia nvestments in marketing and product develop- Iment have propelled German OTC specialist an-European wholesaler and retailer Phoenix Herzegovina, Bulgaria, Kosovo,Macedonia, Engelhard Arzneimittel to the next level and Psaid it had “significantly increased”its retail Montenegro and Serbia. helped it to achieve “remarkable” growth in its presence in Serbiabyacquiring the Goodwill The acquisition of Goodwill comes shortly 2016 financial year, according to the firm’s Apoteka pharmacy chain for an undisclosed sum. after Phoenix announcedthe openingofanew chief executive officer Richard Engelhard. Subject to approvalbythe Serbian com- logistics centre in Gotha, Germany. Reporting sales up by 15% in the year ended petition authorities, Phoenix will takeover Phoenix claimed that the C20 million, 31 March 2017, Engelhard said the recently- Goodwill Apoteka’s138 pharmacies, increasing 10,000sqmGotha site –which supplies phar- released figures indicated that the slfirm’ ong- its network in the country to over300 outlets. maciesinthe Thuringia and Saxonyregions – terminvestmentsoverthe past decade had helped wasits “largest and most modern sales and it reach newheights both domestically and inter- Rebranding planned logistics centre”. nationally,with the firm wbno oasting brands The Goodwill pharmacies will be renamed “From Gotha, delivery to our customers in in over 100 markets. under Phoenix’ Benu brand, which covers its central Germanywill be even faster and more Thesuccessofthese investmentswas clear, existingpharmacies in Serbia, as wellasthose reliable,”commented Windholz. he noted, with sales rising from C48.8 million in the Netherlands and Switzerland. The launch of the Gotha facility marks the in 2006 to C117 million in 2016. In addition to its Benu chain, Phoenix also second time this year Phoenix has invested in As aresult of this“continuously increasing” supplies health products and servicesto Serbian its logistics network. demand, Engelhard revealed that the family-run independent pharmacies as part of its Betty In April, Phoenix opened alogistics cen- company–nowinits fifth generation –was co-operation programme. tre in Belgrade, which it said would connect nowbuilding a“state of the art” productionfacil- “With the addition of Goodwill,weare further wholesalers and retailers in Central and Eastern ity in Niederdorfelden, Germany. strengtheningour retail presence in Serbia, and Europe (OTC bulletin,7April 2017, page 5). Commenting on the company’ssuccess over are clearly expanding our leading position as Phoenix will hope that the Gotha new-build the past decade, Engelhard said shaking up the an integrated healthcare provider in South- helps the firm respond to the “increased pres- firm’sstrategy in twokey areas had drivengrowth. East Europe,”commented OliverWindholz, sure” on margins in Germany, which it citedasa Firstly, Engelhard hadinvested in “targeted” Phoenix’ chief executive officer. contributing factor to the firm’spre-tax profit marketing foranumber of its coreOTC brands. While Phoenix was“strongly growing” its fall in its financial year ended 31 March 2017 At the beginning of last year,the firm launched presence in the South-East European retail (OTC bulletin,16June 2017, page 4). an internationalmultimediamarketing campaign market, the companyalso claimed to be the Pre-tax profits at the firm fell by 24%to for its 70-year-old Prospan herbal cough syrup “market leader” in logistics and wholesale in C243millioninthe12months,despitesalesad- brand (OTC bulletin,5February 2016, page the region –operating in Albania, Bosnia and vancing by 5.1% to C24.4 billion. OTC 18). “Breathe freely again with Prospan” was the tagline of the campaign. This push had helped cement Prospan’srepu- Mergers &Acquisitions tationasthe “mosttrustworthy OTCbrand for Zur Rose snaps up another rival cough medicines”, Engelhard claimed. In addition to the marketing strategy, in- witzerland-based supply chain disruptor Aaachen/Heerlen region of Germany, andasa vestments in product development had also SZur Rose Group is set to expand further result would “achieve synergyeffects along the contributed to the firm’sgrowth, it noted. its position in the German mail-order pharmacy entire value chain”. As evidence of such innovation,Engelhard market with the acquisition of Germany- AccordingtoZur Rose, Vitalsanagenerated pointedtothe “successfullaunch”ofa‘junior’ based ‘pure play’ competitor Vitalsana. turnoverofaround C30 million in 2016, “primar- addition to itsIsla range of throat lozenges (OTC Subject to approvalbycompetition author- ily” from the sale of non-prescription drugs. bulletin,7October 2016, page 18). ities, Zur Rose will takeovertheVitalsanamail- Ströer acquired Vitalsana for C4.5 million Apleasant strawberry flavortoimprove com- orderpharmacy–aswell as its associated ser- last year (OTC bulletin,23 September,2016, pliance in children wasthe keypromise by Engel- viceproviderApDG–fromGermanadvertising page 2). Commenting on its decision to offload hard to German consumers when launching the and media firm Ströer for an undisclosed sum. Vitalsana, Ströer said it wanted to focus on its product last year. As part of the agreement, Zur Rose ex- “core business areas”. Expanding on its performance in 2016, Engel- plainedits Germany-focused subsidiaryDoc- Zur Rose’slatest acquisition comes one hard said increased demand for its “interna- Morris wouldenter intoa“strategic partnership” month after the firm entered into a“co-operative tionally recognised” OTCbrands had driventhe with Ströer,toexploit the latter’s“wide-ranging venture”with Euraponto strengthen itsposition double-digit growth in turnover. media offerings,performance marketing options in Germany(OTC bulletin,3November 2017, Isla and Prospan in particular had exhibited and data-focused products”. page 7). “strong” growth overthe 12 months, Engelhard Zur Rose pointed out that through the ac- Initially,Zur Rose will takeoverEurapon’s pointed out, with sales advancing by 20% and quisition, it would be “pooling asignificant wholesale operations, which will continue to 13% respectively. OTC proportion” of its mail-order business in the supply Eurapon’sonline pharmacy. OTC
15 December 2017 OTC bulletin 7 OTC GENERAL NEWS
Market Research Switches GSK surveys Pfizer celebrates Canadians lmost two-thirds of Canadians suffer from UK Viagraswitch Aweekly body pain according to Glaxo- SmithKline (GSK) Consumer Healthcare’s 2017 Continued from front page health analyst, told OTC bulletin thatthe reclassi- Global Pain Index report (GPI), which also “Pharmacists will be able to determine wheth- fication of sildenafil in theUK wasthe “most sig- revealed adeeper lack of knowledge surround- er treatment is appropriate for the patient and nificant switch in recent memory” and represented ing pain medications. can give advice on erectile dysfunction, usage a“major disruption to the global OTCmarket”. The social and economic impacts of pain of the medicine, potential side effects, and if “Euromonitor estimates that in the first year touched “almost every aspect” of Canadians furtherconsultation with ageneral practitioner of the drug’savailabilityOTC,itislikely to lives, the firm said, adding that head and body (GP) is required,”the MHRA explained. generate more thandouble the sales of the whole pain waspreventing Canadians from “living Pfizer had produced achecklist that phar- of the Cough, Cold, and Allergy Remedies their livesto the full”. macists could choose to use when supplying (CCA) category,” Roberts insisted, “which cur- Expandingonthe emotionalimpactsofpain, the producttodetermineaman’ssuitability,the rently occupies the top spot in OTCsales at GSK explained that it had adetrimental affect agencynoted, with additional advice to the pa- £726 million (C826 million) in 2016.” on an individual’sperception of their age, at- tientprovided on the product label and leaflet. “Even more important than the changes tractiveness and ability to parent. Theuse of the checklist, in combination with a the switch will bring to the UK market is the pharmacist’sprofessional judgement, would, domino effectthatislikelytooccur as other Anxious feelings the MHRAinsisted,“minimise the risk of in- major marketsconsider whethertomakeViagra More than 70% of those Canadians who direct danger arising frommissed diagnosisof available OTC,”Roberts claimed. “In the US, suffered from weekly pain, the report revealed, underlying disease”. prescriptions for erectile-dysfunction drugs have alsoexperienced feelings of anxiety as aresult, “Viagra Connect will not be sold to those fallen in recent years as the pills have become the companyexplained. with severe cardiovascular disorders; at high increasingly unaffordable, butthis decrease The GPI also found that pain had led to a cardiovascular risk; liverfailure;severe kid- in saleswould be easily reversed if Viagra were US$7.1 billion (C6billion) annual hit “on the neyfailure; or taking certain interacting med- switched to OTCstatus and would likely be Canadian economy,asworkers lost an average icines,”the regulator added. themost significant disruptor to the OTCspace of 1.8 working days duetopain, whileperform- Making Viagra Connect available without a the US has ever seen.” ancedippedfor thosewho tried to work through prescription would “help direct men who might By approving Viagra Connect, the UK has their pain, GSK explained. not otherwise seek help into the healthcare sys- become the second major market to allowOTC On top of the social and economic impacts tem”, the MHRA claimed, “and away from the access to sildenafil. of pain, GSK said the report had uncovered a risks that come with buying medicines from Just under 18 months ago, Poland allowed lackofadequateknowledge and understanding websites operating illegally”. men to buysildenafil without aprescription after of pain management amongst the Canadians. Erectile-dysfunctionmedicines were apopu- thecountry’smedicines regulator approvedan Only 31% of Canadianpeople surveyed were lar target for criminals selling unlicensed and application by manufacturer Adamed to sell “very” or “extremely” knowledgeable about the counterfeit medicines, the agencynoted. OTCits MaxOn Active sildenafilproduct,but risk associated with their medication, GSK Commenting on the successful switch, Dr at the lower strength of 25mg (OTC bulletin, pointed out,and despitethe popularityofOTC BerkeleyPhillips, Pfizer’sUKmedical director, 27 May 2016,page 1). pain medication Canadian consumers “don’t said the availability of Viagra Connect in phar- Prior to the ‘true’ prescription-to-OTC switch knowvery muchabout the treatments theyare macies would “offer men who are eligible a of sildenafil in Poland,wZ Ne ealand had come using most often”. newand convenient waytoaccess sildenafil”. closest to granting OTCstatus. Sildenafil, how- “Weunderstand some men may avoid seek- ever,remains partially restricted in the coun- Lackofknowledge ing support and treatment for this condition,” try.Itisstill aprescription medicine “except In particular,the GPI had exposed aspe- Phillips said, “sowebelieve giving them the when supplied by apharmacist who has suc- cific lack of knowledge surrounding topical option to talk to apharmacist and buyViagra cessfully completedthe approvedtraining pro- anti-inflammatories. Connect could be areal step forward in encour- gramme for the treatment of erectile dysfunc- Rather than engaging with the variety of dif- aging more men into the healthcare system.” tion in males aged 35 to 70 years” (OTC bul- ferent types of pain relief available, the report “Aserectile dysfunction maybeasign of letin,24October 2014, page 1). found consumers were more likely to “grab abot- an underlyingcondition such as diabetes, high Pfizer tried and failed to switch sildenafil tle of pills” from apharmacy. blood pressure, or heart disease,”headded, through the European Union’s(EU’s) central- Documenting the social and economic im- “there could also be awider benefit to public ised procedure in 2008 (OTC bulletin,28Nov- pacts of pain across 32 countries, the GPI report health in the long term.” ember 2008, page 1). waslaunched alongside the firm’s‘Better for Accordingtomarket researchfirm Euromon- The US firm withdrewits Viagra applica- Everyone’ campaignin March last year(OTC itor International, the approvalofViagraCon- tion in the EU following “some concerns” –in- bulletin,20October 2017, page16). The cam- nectwill provide asignificant boost to the UK cluding alack of medical supervision, potential paign supported GSK’srelease of its Voltarol OTCmarket and has the potential to trigger for unintentional misuse and possible abuse diclofenac based topical-analgesic brand (OTC similar switches in other countries. of the drug for recreational purposes –atthe bulletin,4March 2016, page 16). OTC Kenna Roberts, Euromonitor’sconsumer European Medicines Agency(EMA). OTC
8 OTC bulletin 15 December 2017 OTC DISTRIBUTION IN EUROPE I TIO C E T E I IE
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